Navy Contractor Fined $20m for Overbilling

Inchcape Shipping Services Holdings Limited, a British maritime services contractor, agreed to pay $20 million to settle allegations that it overbilled the Navy for ship-husbanding services.

The company provides food, subsistence items, waste removal, telephone, ship-to-shore transportation, force protection and local transportation services to Navy ships while they are in port in Africa, Asia and the Americas. The Justice Department announced the settlement May 29, stating that the company submitted invoices to the Navy that overstated the quantity of goods and services it provided. Additionally, the company billed at higher rates than allowed — double billing in some instances.

“This settlement demonstrates that the Department of the Navy will continue to hold contractors accountable for the agreements they make to supply our fleet,” said Navy Secretary Richard V. Spencer.